They DO, I REPEAT THEY DO pay Federal Income Tax of about 10%.
Under 999 that would "drop" to 9%... but there would additionally be a new Fed Sales Tax of 9%. No?
I went to Cain's website, it neither explains this nor addresses this.
Does someone with a low paying job pay payroll tax and does the employer pay a payroll tax? You have to subtract that before you can even start to compare the numbers.
As I understand it the 9% would be on purchases of new products at point of sale. Prices should fall because there would no longer be double corporate taxation. How much I don’t know. Basically an individuals $15K to $20K income would then go much further, his(or her) buying power would increase.
Again 9-9-9 would be a transitional phase toward a fair(i.e. consumption)tax of some percentage. (I have seen figures that range from 15% to 30%.) It would capture the underground economy. Also I have seen fair tax plans that exempt food & rent. It’s a far better system then what we have now and it makes everybody a player with skin in the game. It’s the plan most free market economists say makes the best sense for our economy.